Clifford Chance

Modernising the UK's redress system

5 December 2024

Recent developments in motor finance commission cases have highlighted the need to modernise the UK's redress system, with potential costs to financial institutions exceeding £16bn.

In response, the Financial Conduct Authority (FCA) and the Financial Ombudsman Service (FOS) have issued a "Call for Input" to seek feedback on improving the redress framework. The potential scale of redress related to motor finance can be appreciated from other previous mass redress events referred to in the Call for Input, for example, redress for mis-sold Payment Protection Insurance resulted in 34.4m consumers receiving £38.3bn. These eye-watering amounts demonstrate the scale and effect of such schemes.

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